VA awards $27.3M for High Tech Bio-Medical Accessories & Supplies to Philips Medical Systems

Contract Overview

Contract Amount: $27,330,804 ($27.3M)

Contractor: Philips Medical Systems North America Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-06-30

End Date: 2009-06-30

Number of Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: HIGH TECH BIO-MEDICAL ACCESSORIES AND SUPPLIES.

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021, UNITED STATES OF AMERICA

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27.3 million to PHILIPS MEDICAL SYSTEMS NORTH AMERICA INC. for work described as: HIGH TECH BIO-MEDICAL ACCESSORIES AND SUPPLIES. Key points: 1. Spending focused on irradiation apparatus manufacturing. 2. Sole competitor identified: Philips Medical Systems North America Inc. 3. Contract awarded in 2009, potentially outdated for current market analysis. 4. Fixed Price with Economic Price Adjustment contract type carries some risk.

Value Assessment

Rating: fair

The contract value of $27.3M for bio-medical accessories and supplies is moderate. Without specific unit cost data or comparison to similar VA contracts from the same period, a precise pricing assessment is difficult. The economic price adjustment clause introduces potential for cost increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded to a single vendor, Philips Medical Systems North America Inc., suggesting limited competition. This sole-source or limited competition approach may have impacted price discovery and potentially led to higher costs for the government.

Taxpayer Impact: The limited competition and economic price adjustment clause may have resulted in taxpayers paying more than necessary for these bio-medical accessories and supplies.

Public Impact

Ensures availability of critical bio-medical equipment for veterans. Potential for higher costs due to limited competition. Contract awarded over a decade ago, raising questions about current relevance and value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Economic price adjustment
Outdated contract award date

Positive Signals

Ensures supply of necessary medical equipment

Sector Analysis

The spending falls under the manufacturing of irradiation apparatus, a specialized segment within the broader high-tech bio-medical sector. Benchmarks for this specific niche are hard to establish without more granular data, but overall medical equipment spending is significant.

Small Business Impact

There is no indication of small business participation in this contract award. The award went to a large corporation, Philips Medical Systems North America Inc., suggesting opportunities for small businesses were either not sought or not met.

Oversight & Accountability

The award was made by the Department of Veterans Affairs. Oversight would typically involve contract performance monitoring and adherence to terms, especially concerning the economic price adjustment. The age of the contract warrants review for continued necessity and value.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition
Economic price adjustment clause
Contract awarded in 2009
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27.3 million to PHILIPS MEDICAL SYSTEMS NORTH AMERICA INC.. HIGH TECH BIO-MEDICAL ACCESSORIES AND SUPPLIES.

Who is the contractor on this award?

The obligated recipient is PHILIPS MEDICAL SYSTEMS NORTH AMERICA INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $27.3 million.

What is the period of performance?

Start: 2009-06-30. End: 2009-06-30.

What was the specific justification for limiting competition to Philips Medical Systems North America Inc. for this contract?

The provided data does not specify the justification for limiting competition. Typically, such limitations occur due to unique capabilities, existing infrastructure, or specific product requirements that only one vendor can meet. A thorough review would be needed to confirm if these conditions were valid or if alternative competitive strategies were overlooked.

How did the economic price adjustment clause impact the final cost of the contract compared to a fixed-price award?

The economic price adjustment (EPA) clause allows for modifications to the contract price based on changes in economic factors, such as inflation or material costs. Without the contract's final value and the specific EPA formula, it's impossible to quantify the exact impact. However, EPAs generally increase the final cost compared to a fixed-price contract, especially in periods of high inflation.

Given the 2009 award date, is this contract still relevant for assessing current VA spending effectiveness in bio-medical supplies?

The 2009 award date suggests this contract is likely expired or significantly outdated for assessing current VA spending effectiveness. Technology and market prices in the bio-medical sector evolve rapidly. While it provides historical data, it may not reflect current needs, competitive landscapes, or pricing benchmarks, potentially skewing effectiveness evaluations.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Contractor Details

Parent Company: Philips RS North America LLC (UEI: 404553448)

Address: 22100 BOTHELL EVERETT HWY, BOTHELL, WA, 98021

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,330,804

Exercised Options: $27,330,804

Current Obligation: $27,330,804

Parent Contract

Parent Award PIID: V797P6011B

IDV Type: IDC

Timeline